annual compound (internal) rate of return

Related BrainMass Solutions

• Financial Pre-Test Problems

  The annual revenue-growth rates for a new tech star tup during its first 4 years of operations were as follows: 1 = 50, 2 = 50, 3 = -50, 4 = -50 Rounded to the nearest tenth of one percent, the start up's 4-year Compound Annual Growth Rate was

• All-State Mutual Fund average annual compound rate of return

  b) Also find its three year (2008-2010) average annual compound rate of return.

• Stock Valuation

  Calculate the compound annual rate of return on the stock investment.

• Metrics whether to accept or reject the project

  The modified internal rate of return (MIRR) is the compound average annual rate that is calculated with a reinvestment rate different than the project's IRR.

• Strident Marks (On Your Mark): Calculate Key Financial Metrics for this Capital Budgeting Project

  The modified internal rate of return (MIRR) is the compound average annual rate that is calculated with a reinvestment rate different than the project's IRR.

• Capital budgeting

  = $10,000; Annual Cash Costs = $4,200 Roethlis imposes a required rate of return of 10%.

• Calculate Weighted and Internal Returns

  r1 = (44,000-40,000)/40,000 = 10% r2 = (54,000-50,000) / 50,000= 8% Now, we have to compound the returns rA = (1+0.1)* (1+0.08) - 1 = 18.8% b) The formula for calculating the internal rate of return is, W2/(1 + r)2

• Calculating rate of return with Excel

  What is the compound average annual rate of return?

• Rate of return

  We use the compound interest formual to calculate the annual rate of return. 9,715.02 = 3,750 X (1+r) ^54 (9,715.02/3,750)^(1/54) = 1+r 1+r = 1.0178 r = 1.78% The annual rate of return is 1.78% The solution explains how to calculate the annual